Projection of Related-party Transactions

The total value of 2008 related-party transactions between the company and Hefei Bainian Molding Technology Co., Ltd., Hefei MD Rongshida Refrigerator Co., Ltd., Hefei Hualing Co., Ltd. and Hefei Rongshida Washing Machine Manufacture Co., Ltd., have respectively been projected to be RMB 50 mln, RMB 85 mln, RMB 40 mln and RMB 41 mln.

The company's related parties mainly supply washing machines, refrigerators and certain necessary components used in the products to the company. The related-party transactions can guarantee the company's balance between production and sales as well as lower its production costs. The transactions will not exert any negative impact on the company's financial position or operating results and will not harm the interests of the company's shareholders.

Board of Directors
10 Sept 2008


Source: Securities Times

Date: 11 Sept 2008

CN01/VW/DM/BT/KM